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South Korea Seeks a Boost
Through Merger of Banks

By

Hae Won ChoiStaff Reporter of The Wall Street Journal

Updated Dec. 26, 2000 2:33 a.m. ET

SEOUL, South Korea -- The merger of two South Korean retail bank chains is expected to help alleviate overcapacity in the country's beleaguered financial system. But analysts said how substantial the economic impact of the merger will be remains to be seen.

Kookmin Bank and Housing & Commercial Bank , the country's healthiest banks, signed a memorandum of understanding on Friday to merge, though no time frame was announced. The new bank would have 167 trillion won ($136.02 billion) in assets and will be by far Korea's...